If ATC = $10, AVC = $8, AFC = $2

question 68

Multiple Choice

If ATC = $10, AVC = $8, AFC = $2 and MC = $12, for a given level of output Q, then:

• A) the firm must be operating on the downward-sloping section of its ATC curve.
• B) the firm must be operating on the upward-sloping section of its AFC curve.
• C) the firm must be operating on the upward-sloping section of its ATC curve.
• D) it is uncertain from the figures given where the firm is operating.

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Definitions:

Objective Features

Characteristics or aspects of something that are based on factual data, rather than influenced by personal feelings or opinions.

Working Subgroup

A smaller team formed within a larger group or project team, tasked with handling specific aspects or tasks of the overall project.

Pre-Packed

Refers to items that are packaged before being sold, often for convenience, hygiene, or preservation purposes.

Demographic Characteristics

Measurable features of an audience that can be counted objectively: age, education level, income, etc.